Insurgents struck at the centre of the US-led occupation of Iraq last night, firing mortars at the heavily guarded district that includes major American facilities.

The heart of the American occupation of Iraq came under attack in Baghdad tonight when mortars exploded inside a former presidential palace now used as the coalition headquarters.

The death toll from the massive car bomb that exploded at Iraq’s holiest Shiite shrine rose to 85 today, with 140 injured.

Rival Afghan factions were today trying to agree on the members of an interim government for the country, as a man believed to be a US citizen was found among captured Taliban fighters.